gr8lakes

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I have been trying to do the numbers.. they just dont add up for me..
$10,000 investment
30 year time frame
8% int.
Total - $100,626.57
Simple, Time Value of Money exercise
There is no way that someone is paying 50K in fees.. sorry I dont believe it...
M and E Fees are taken out qtly. its nearly impossible to figure out the costs.

To all,
All of this chit chat is giving me a head ache. The FACT is if a teacher starts a 403(b) w/ an annuity company its not a BAD thing... If a rep. gets a teacher to start saving for retirement its not a BAD thing.... STRS, at least in the state I live in would not be enough to cover all expenses in retirement...are there better choices than others....sure there are, but let me ask this question.. is it better for a teacher to save in a annuity or nothing at all... This site is supposed to help teacher make an informed choice..stop bashing products, stop bashing reps...lets make this site useful rather than hurtful...

Joel,
I would have to disagree with your assumption of 403(b)'s being funded by annuity contracts because of the "FAT" commissions they pay the reps.
Before 1974 one couldn't use anything but an annuity to fund a 403(b) and it wasn't until much later that the M.F. companies got into this marketplace. We all realize the no-load companies aren't pushing down the doors of school districts or non-profits to put their funds in. I agree annuities are not for everybody... heck, not even the majority but I know for a fact that in cetain cases they are a good fit.
I think FrenchTeacher hit it right on the head..... On a public forum such as this, it is VERY counterproductive to bash products and make those "stupid" assumptions.
It makes no sense to bash reps for selling these products..they are not the problem..I believe we need to look at the Treasures and CFO's and come down on them for allowing only (in most cases) annuities. Until we properly educate these people, we are not going to change a thing...

There are really no down sizes to a 403(b)7. It really depends on the needs/wants on the individual.
A TSA can provide more options than a 403(b)7 , (ie. diversification, death benefit, payout option) but all of these come at a price. If these benefits are not important to you than a 403(b)7 makes sense.
Its hard to make a blanket statement because every individual has different needs and wants.
Hope this helps

I worked for AIG VALIC for a number of years and I have never heard of a group (i.e. a university) pay for the fees. When you recieve a statement from AIG it NEVER tell you what the fees are......as someone wrote, check the performance of the funds compared to the performance in your sub-accounts... you will find a difference.... as good as your rep. is, she is recieving a LARGE comm. check on the business she writes... The university is not paying her bills.... you and the rest of her clients are... AIG VALIC is a good company, they do have a nice product, but its only one good product... how can they offer unbiased advise with only one product ?

I know in the state of Ohio you are allowed 3 payroll slots for 457 plans..one of those being the state run plan..so there is room for other providers to step in.. the question is, does the school district adopt 3 different plan docs. or do they run off one set..